Receding mirage

24 December 2018 By Gina Chon Follow @GinaChon

The U.S. president’s trade war has evaporated export markets for soy beans and other crops, leaving growers struggling even more than before. Yet they’re mostly sticking by Trump. If he can’t strike a good deal, farmers’ faith will erode when credit dries up for the next harvest.

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The White House said on Dec. 1 that China has undertaken to immediately start buying U.S. agricultural products after the two sides agreed to pause their trade war. The Chinese government hasn’t confirmed the move; a 25 percent tariff imposed on U.S. soybeans and other goods remains in place.

U.S. net farm income is expected to fall by almost 50 percent compared to five years ago to $66.3 billion in 2018, according to U.S. Department of Agriculture forecasts. During that same period, total farm debt has risen by 30 percent to $409.5 billion. The ratio of farm debt to income could reach 3:1 this year, the highest since 1983.

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